3rd Quarter 2017

This Richardson/East Plano Submarket covers the I-75 corridor from Walnut Street to HedgcoxeRoad and includes central Plano up to Sam Rayburn Tollway to the North until Alma Road when itdrops down to Hedgecoxe Road and Coit Road to the West. The included statistics cover Class Aand B office buildings that have more than 50,000 square feet and are either under constructionor existing. With more large companies looking to relocate and consolidate to the Dallas suburbs,the Richardson/East Plano Sub-Market provides a valuable option with several large blocks ofspace still available.

The Richardson/East Plano Submarket has experienced an increase of the direct Class A vacancywith a change from 17.7% in the third quarter of 2016 to 24.6% for the third quarter 2017.Meanwhile, direct weighted average full-service rents increased from $26.95 to $27.50 persquare foot during the same time. Class B vacancy decreased from 19.2% to 17.8% and as aresult, full-service rental rates increased from $19.17 per square foot to $19.28 per square foot.

TOTAL NETABSORPTION(through Q3)

DELIVERED(through Q3)

2017 -453,005 SF 2017 300,000 SF

2016 977,619 SF 2016 1,237,662 SF

DIRECT FULL SERVICE RENTAL RATE (Q3)

DIRECTVACANCY (Q3)

2017 $24.64 PSF 2017 19.3%

2016 $23.92 PSF 2016 16.5%

DIRECT VACANCY BY CLASS (Q3)

Class A 24% Class B 18%

Advisory Experience

Andy Goldston, CCIMSenior Advisor

agoldston@citadelpartnersus.com214-420-3168

3rd QUARTER INSIGHTRichardson/East Plano

Advisory Experience

Maxim – 700,000 SF

The Domain, Austin, TX – 70 Acres Weaver – 58,000 SF

Knoll Trail Plaza – 120,000 SF Build-to-Suit

Weaver – 171,000 SF Multi-marketTexas Instruments – 1,200,000 SF

Invensys – 45,000 SF Sublease

Texas Instruments – 70.537 Acres with a 441,362 SF Semiconductor

Flextronics – 1,500,000 SF

ESI – 70,000 SF

TECHNOLOGY LEASE

MULTIPLE TRANSACTIONS

DISPOSITION

ADAPTIVE REUSE OFFICE LEASE

This document has been prepared by Citadel Partners, LLC. for advertising and general information only. Citadel Partners, LL C. makes no guarantees, representations or warranties of any kind, expressed or implied,

regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Citadel Partners, LLC.

excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This

publication is the copyrighted property of Citadel Partners, LLC. and/or their licensor(s). All rights reserved.

Sub-Market Momentum & Forecast

Office Sub-Market Highlights

Office Submarket Momentum & ForecastEast Plano/Richardson News

Total Office Submarket Q3 Statistics

2017 SUBMARKET HIGHLIGHTS

Lease Rates – Full Service(All Classes)

citadelpartnersus.com

Top New Leases Tenant Square FeetGalatyn Commons Service King 64,9163300 E Renner Rd. GENPACT 63,603The Tower Lakeside Campus Texas Capital Bank 54,4923000 Waterview Pkwy University of Texas at Dallas 45,642

Deliveries Delivery Date Square Feet3400 Cityline 2017 Q2 300,000Alcatel Lucent Regional HQ 2016 Q3 250,000APCON 2016 Q4 58,901

Absorption / Deliveries / Vacancy(All Classes)

Manufacturer to double its workforce with help of new hub in RichardsonA manufacturer of lighting controls — Legrand Building Control Systems — has decided to open a service center in Campbell Creek Business Park in Richardson, with plans to double its workforce in the near future.

Legrand Building Control Systems, a division of Legrand North America, has leased about 42,000 square feet at 2240 Campbell Creek Blvd. in Richardson. This office will become the new home for Legrand BCS' new service center and will help support the division's national operations.

"This industry is really seeing tremendous growth as new energy codes are introduced to require building controls and there's a tenant demand for a certain environment," Don Clark, vice president and general manager of services at Legrand Buildings Controls Systems division in North America, in an exclusive interview. As an innovator in the energy efficient lighting controls sector, Mayor Paul Voelker said Legrand is a welcome addition to Richardson's business community.

By the end of the year, Legrand expects the new facility to house 100 employees, with up to 165 employees to work from the center in the near future. As part of the deal, Legrand has first right-of-refusal on an additional 19,000 square feet.

In establishing the new service center, Clark said the company wanted to stay in North Texas because of the centralized U.S. location met the company's needs.

And Richardson also filled some of the criteria Legrand had to ensure it found its workforce, Clark said.

Dallas Business Journal 10.11.17

# Blds Total RBA Direct SF Total SF Vac %

Central Expressway 275 15,199,157 1,534,181 1,561,870 10.3% (54,890) 0 0 $29.22

Dallas CBD 142 33,713,487 7,070,879 7,555,238 22.4% (116,065) 92,237 322,110 $25.19

East Dallas 1,059 13,131,324 1,017,609 1,045,262 8.0% (143,720) 8,964 367,124 $24.31

Far North Dallas 1,090 60,313,177 6,855,643 7,477,989 12.4% 3,026,806 3,180,319 4,779,452 $28.11

Ft Worth CBD 117 11,789,841 1,128,172 1,167,906 9.9% 117,602 0 280,489 $26.04

Las Colinas 435 39,921,322 5,235,027 5,763,787 14.4% 967,814 1,029,461 826,913 $25.16

LBJ Freeway 265 22,602,316 4,627,566 4,895,097 21.7% 272,267 0 0 $22.08

Lewisville/Denton 926 13,232,562 1,004,615 1,126,728 8.5% (15,491) 159,840 51,866 $22.39

M id-Cities 2,600 40,609,241 5,487,127 5,572,927 13.7% (177,186) 604,784 634,788 $21.79

North Fort Worth 587 6,699,466 554,649 616,114 9.2% (145,002) 71,120 125,874 $22.04

Northeast Ft Worth 342 5,414,112 1,861,516 1,861,516 34.4% 89,911 0 0 $19.22

Preston Center 148 5,896,743 452,200 489,599 8.3% 973 4,506 298,617 $39.16

Richardson/Plano 1,409 41,514,259 6,735,003 7,104,767 17.1% (68,142) 665,386 586,207 $24.54

South Ft Worth 1,646 20,012,872 1,612,402 1,692,910 8.5% 402 248,414 174,205 $23.66

Southwest Dallas 813 7,353,922 524,520 529,626 7.2% 168,090 92,828 15,544 $19.02

Stemmons Freeway 285 15,221,512 3,277,900 3,347,695 22.0% 145,831 72,630 0 $16.84

Uptown/Turtle Creek 302 14,758,418 1,359,940 1,584,755 10.7% 143,163 214,765 1,305,014 $37.75

T o tals 12,441 367,383,731 50,338,949 53,393,786 14.5% 4,212,363 6,445,254 9,768,203 $ 25.04

Under

Const SF

Quoted

RatesM arket

Existing Inventory Vacancy YTD Net

Absorption

YTD Deliveries

5.00%

7.00%

9.00%

11.00%

13.00%

15.00%

17.00%

19.00%

21.00%

23.00%

-1,100,000

-700,000

-300,000

100,000

500,000

2008 2010 2012 2014 2016 Q32017

Total Net Absorption (sf) RBA Delivered (sf) Direct Vacant %

$18.00$20.00$22.00$24.00$26.00

2008 2010 2012 2014 2016 Q32017

Direct Rental Rate

The East Plano/Richardson Submarket hasremained stable over the past quarter. The ClassA office market has seen an increase in vacancyresulting from the delivery of 300,000 square feetat Transwestern’s 3400 Cityline development. Thisadditional vacancy has been offset however byincreased leasing in Class B office space. Class Bspace is now proving to provide a viablealternative for companies that are looking formore affordable space, not just from withinRichardson, but from surrounding markets aswell. With rents increasing more dramatically insurrounding markets such as Legacy and NorthCentral Expressway, the rates in Richardson stillprovide a value to tenants looking in North Dallas.As a result of recent deliveries and spaceexpected to return to the market over the nexttwelve months, we expect this market to remainstable for the foreseeable future.

Sub-Market Momentum & Forecast

Office Sub-Market Highlights

Office Submarket Momentum & ForecastEast Plano/Richardson News

Total Office Submarket Q3 Statistics

2017 SUBMARKET HIGHLIGHTS

Lease Rates – Full Service(All Classes)

citadelpartnersus.com

Top New Leases Tenant Square FeetGalatyn Commons Service King 64,9163300 E Renner Rd. GENPACT 63,603The Tower Lakeside Campus Texas Capital Bank 54,4923000 Waterview Pkwy University of Texas at Dallas 45,642

Deliveries Delivery Date Square Feet3400 Cityline 2017 Q2 300,000Alcatel Lucent Regional HQ 2016 Q3 250,000APCON 2016 Q4 58,901

Absorption / Deliveries / Vacancy(All Classes)

Manufacturer to double its workforce with help of new hub in RichardsonA manufacturer of lighting controls — Legrand Building Control Systems — has decided to open a service center in Campbell Creek Business Park in Richardson, with plans to double its workforce in the near future.

Legrand Building Control Systems, a division of Legrand North America, has leased about 42,000 square feet at 2240 Campbell Creek Blvd. in Richardson. This office will become the new home for Legrand BCS' new service center and will help support the division's national operations.

"This industry is really seeing tremendous growth as new energy codes are introduced to require building controls and there's a tenant demand for a certain environment," Don Clark, vice president and general manager of services at Legrand Buildings Controls Systems division in North America, in an exclusive interview. As an innovator in the energy efficient lighting controls sector, Mayor Paul Voelker said Legrand is a welcome addition to Richardson's business community.

By the end of the year, Legrand expects the new facility to house 100 employees, with up to 165 employees to work from the center in the near future. As part of the deal, Legrand has first right-of-refusal on an additional 19,000 square feet.

In establishing the new service center, Clark said the company wanted to stay in North Texas because of the centralized U.S. location met the company's needs.

And Richardson also filled some of the criteria Legrand had to ensure it found its workforce, Clark said.

Dallas Business Journal 10.11.17

# Blds Total RBA Direct SF Total SF Vac %

Central Expressway 275 15,199,157 1,534,181 1,561,870 10.3% (54,890) 0 0 $29.22

Dallas CBD 142 33,713,487 7,070,879 7,555,238 22.4% (116,065) 92,237 322,110 $25.19

East Dallas 1,059 13,131,324 1,017,609 1,045,262 8.0% (143,720) 8,964 367,124 $24.31

Far North Dallas 1,090 60,313,177 6,855,643 7,477,989 12.4% 3,026,806 3,180,319 4,779,452 $28.11

Ft Worth CBD 117 11,789,841 1,128,172 1,167,906 9.9% 117,602 0 280,489 $26.04

Las Colinas 435 39,921,322 5,235,027 5,763,787 14.4% 967,814 1,029,461 826,913 $25.16

LBJ Freeway 265 22,602,316 4,627,566 4,895,097 21.7% 272,267 0 0 $22.08

Lewisville/Denton 926 13,232,562 1,004,615 1,126,728 8.5% (15,491) 159,840 51,866 $22.39

M id-Cities 2,600 40,609,241 5,487,127 5,572,927 13.7% (177,186) 604,784 634,788 $21.79

North Fort Worth 587 6,699,466 554,649 616,114 9.2% (145,002) 71,120 125,874 $22.04

Northeast Ft Worth 342 5,414,112 1,861,516 1,861,516 34.4% 89,911 0 0 $19.22

Preston Center 148 5,896,743 452,200 489,599 8.3% 973 4,506 298,617 $39.16

Richardson/Plano 1,409 41,514,259 6,735,003 7,104,767 17.1% (68,142) 665,386 586,207 $24.54

South Ft Worth 1,646 20,012,872 1,612,402 1,692,910 8.5% 402 248,414 174,205 $23.66

Southwest Dallas 813 7,353,922 524,520 529,626 7.2% 168,090 92,828 15,544 $19.02

Stemmons Freeway 285 15,221,512 3,277,900 3,347,695 22.0% 145,831 72,630 0 $16.84

Uptown/Turtle Creek 302 14,758,418 1,359,940 1,584,755 10.7% 143,163 214,765 1,305,014 $37.75

T o tals 12,441 367,383,731 50,338,949 53,393,786 14.5% 4,212,363 6,445,254 9,768,203 $ 25.04

Under

Const SF

Quoted

RatesM arket

Existing Inventory Vacancy YTD Net

Absorption

YTD Deliveries

5.00%

7.00%

9.00%

11.00%

13.00%

15.00%

17.00%

19.00%

21.00%

23.00%

-1,100,000

-700,000

-300,000

100,000

500,000

2008 2010 2012 2014 2016 Q32017

Total Net Absorption (sf) RBA Delivered (sf) Direct Vacant %

$18.00$20.00$22.00$24.00$26.00

2008 2010 2012 2014 2016 Q32017

Direct Rental Rate

The East Plano/Richardson Submarket hasremained stable over the past quarter. The ClassA office market has seen an increase in vacancyresulting from the delivery of 300,000 square feetat Transwestern’s 3400 Cityline development. Thisadditional vacancy has been offset however byincreased leasing in Class B office space. Class Bspace is now proving to provide a viablealternative for companies that are looking formore affordable space, not just from withinRichardson, but from surrounding markets aswell. With rents increasing more dramatically insurrounding markets such as Legacy and NorthCentral Expressway, the rates in Richardson stillprovide a value to tenants looking in North Dallas.As a result of recent deliveries and spaceexpected to return to the market over the nexttwelve months, we expect this market to remainstable for the foreseeable future.

3rd Quarter 2017

This Richardson/East Plano Submarket covers the I-75 corridor from Walnut Street to HedgcoxeRoad and includes central Plano up to Sam Rayburn Tollway to the North until Alma Road when itdrops down to Hedgecoxe Road and Coit Road to the West. The included statistics cover Class Aand B office buildings that have more than 50,000 square feet and are either under constructionor existing. With more large companies looking to relocate and consolidate to the Dallas suburbs,the Richardson/East Plano Sub-Market provides a valuable option with several large blocks ofspace still available.

The Richardson/East Plano Submarket has experienced an increase of the direct Class A vacancywith a change from 17.7% in the third quarter of 2016 to 24.6% for the third quarter 2017.Meanwhile, direct weighted average full-service rents increased from $26.95 to $27.50 persquare foot during the same time. Class B vacancy decreased from 19.2% to 17.8% and as aresult, full-service rental rates increased from $19.17 per square foot to $19.28 per square foot.

TOTAL NETABSORPTION(through Q3)

DELIVERED(through Q3)

2017 -453,005 SF 2017 300,000 SF

2016 977,619 SF 2016 1,237,662 SF

DIRECT FULL SERVICE RENTAL RATE (Q3)

DIRECTVACANCY (Q3)

2017 $24.64 PSF 2017 19.3%

2016 $23.92 PSF 2016 16.5%

DIRECT VACANCY BY CLASS (Q3)

Class A 24% Class B 18%

Advisory Experience

Andy Goldston, CCIMSenior Advisor

agoldston@citadelpartnersus.com214-420-3168

3rd QUARTER INSIGHTRichardson/East Plano

Advisory Experience

Maxim – 700,000 SF

The Domain, Austin, TX – 70 Acres Weaver – 58,000 SF

Knoll Trail Plaza – 120,000 SF Build-to-Suit

Weaver – 171,000 SF Multi-marketTexas Instruments – 1,200,000 SF

Invensys – 45,000 SF Sublease

Texas Instruments – 70.537 Acres with a 441,362 SF Semiconductor

Flextronics – 1,500,000 SF

ESI – 70,000 SF

TECHNOLOGY LEASE

MULTIPLE TRANSACTIONS

DISPOSITION

ADAPTIVE REUSE OFFICE LEASE

This document has been prepared by Citadel Partners, LLC. for advertising and general information only. Citadel Partners, LL C. makes no guarantees, representations or warranties of any kind, expressed or implied,

regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Citadel Partners, LLC.

excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This

publication is the copyrighted property of Citadel Partners, LLC. and/or their licensor(s). All rights reserved.